The expansion of the India-Bangladesh Friendship Pipeline (IBFP), which transports diesel from India to Bangladesh, has been put on hold due to recent political instability in Bangladesh. The pipeline, inaugurated in March 2023 by Indian Prime Minister Narendra Modi and former Bangladeshi Prime Minister Sheikh Hasina, currently spans 131 kilometers from Siliguri in West Bengal to Parbatipur in Dinajpur district of Bangladesh. It has a capacity of one million metric tonnes per annum (MMTPA) and serves seven districts in northern Bangladesh.
According to sources quoted by Mint, the Government of India had considered extending the pipeline beyond Parbatipur to supply more areas in Bangladesh. However, the ongoing political turmoil following protests and Sheikh Hasina’s resignation has prompted India to pause any further discussions or considerations regarding the expansion. The sources indicated that India prefers to wait for the situation to stabilize before proceeding with any new plans, with no specific timeline provided for the resumption of talks.
The IBFP, built at an approximate cost of Rs 377 crores, with Bangladesh contributing Rs 285 crore through grant assistance from India, has been successful in its current operations. Besides diesel, there were also proposals to extend the pipeline to include high sulphur fuel oil and furnace oil for various uses, including powering homes, businesses, and the textile industry, which is a significant contributor to Bangladesh’s economy.
In addition to the pipeline, petroleum products are also delivered to Bangladesh via rail from Numaligarh Refinery in Assam. Despite the political situation affecting some development projects, Numaligarh Refinery Ltd (NRL) Chairman Ranjit Rath assured that current operations remain unaffected. NRL plans to expand its capacity from 3 MMTPA to 9 MMTPA and is working on several infrastructure projects, including the Paradip-Numaligarh crude oil pipeline and a second-generation bio-refinery in Assam.